Poultry producers’ perceptions of changing market conditions : a field study of the poultry production in Khartoum state of Sudan

Sudan has always showed great potential in the poultry industry, but it has not been until now that this potential has blossomed and is growing quickly. As large agribusinesses1are taking over the market shares within the urban areas, smallholders2 have been put out of business. They are not able to...

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Detalles Bibliográficos
Autores principales: El-Obeid, Sara, Lundström, Ella
Formato: M2
Lenguaje:Inglés
sueco
Publicado: SLU/Dept. of Economics 2012
Materias:
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author El-Obeid, Sara
Lundström, Ella
author_browse El-Obeid, Sara
Lundström, Ella
author_facet El-Obeid, Sara
Lundström, Ella
author_sort El-Obeid, Sara
collection Epsilon Archive for Student Projects
description Sudan has always showed great potential in the poultry industry, but it has not been until now that this potential has blossomed and is growing quickly. As large agribusinesses1are taking over the market shares within the urban areas, smallholders2 have been put out of business. They are not able to compete with mass production and lack financial assets to improve their production techniques. Contract farming is defined as initiatives from agro industrial companies to secure access to smallholder produce and has in developing countries become a way of allowing the poor to participate in a larger market (Farrington, 1999). The aim with this study was to investigate the suitability of implementing the contract farming concept within the poultry industry in Sudan today. The study is a qualitative field study and the authors have conducted qualitative interviews with respondents involved in the poultry industry in Sudan. For an overall perspective the respondents represented different parts of the poultry industry. The empirical results were later analysed in relation to the assumptions of agency theory. The results found imply that it would be difficult to introduce contract farming in Sudan’s poultry industry today. This is mainly explained by the agribusinesses unwillingness to take on more responsibility as they already are under stress because of government interference. Other findings are that the agribusinesses see no benefits from entering a contract agreement with a smallholder. The study also found that nor the smallholders did see much benefits other than financial from cooperation with the agribusinesses. Political issues cause problems for agribusinesses as well as smallholders, and have created a nervous society where independence seems to be the goal of each party. 1 Agribusiness refers to the various businesses that are connected with producing, preparing and selling farm product (www.dictionary.cambridge.org, 2012). 2 Smallholder refers to farmers operating a farm of 2 ha or less (www.ifpri.org , 2007).
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spelling RepoSLU48132012-09-19T12:00:44Z Poultry producers’ perceptions of changing market conditions : a field study of the poultry production in Khartoum state of Sudan El-Obeid, Sara Lundström, Ella Agency theory contract farming Sudan poultry market failure Sudan has always showed great potential in the poultry industry, but it has not been until now that this potential has blossomed and is growing quickly. As large agribusinesses1are taking over the market shares within the urban areas, smallholders2 have been put out of business. They are not able to compete with mass production and lack financial assets to improve their production techniques. Contract farming is defined as initiatives from agro industrial companies to secure access to smallholder produce and has in developing countries become a way of allowing the poor to participate in a larger market (Farrington, 1999). The aim with this study was to investigate the suitability of implementing the contract farming concept within the poultry industry in Sudan today. The study is a qualitative field study and the authors have conducted qualitative interviews with respondents involved in the poultry industry in Sudan. For an overall perspective the respondents represented different parts of the poultry industry. The empirical results were later analysed in relation to the assumptions of agency theory. The results found imply that it would be difficult to introduce contract farming in Sudan’s poultry industry today. This is mainly explained by the agribusinesses unwillingness to take on more responsibility as they already are under stress because of government interference. Other findings are that the agribusinesses see no benefits from entering a contract agreement with a smallholder. The study also found that nor the smallholders did see much benefits other than financial from cooperation with the agribusinesses. Political issues cause problems for agribusinesses as well as smallholders, and have created a nervous society where independence seems to be the goal of each party. 1 Agribusiness refers to the various businesses that are connected with producing, preparing and selling farm product (www.dictionary.cambridge.org, 2012). 2 Smallholder refers to farmers operating a farm of 2 ha or less (www.ifpri.org , 2007). Sudan har alltid visat stor potential för kycklingproduktion men det är först nu som denna potential tillåts blomstra och växer snabbt. Då stora företag tar över marknadsandelar i städerna, tvingas småproducenterna lägga ner sin verksamhet. De inte har möjlighet att konkurrera med massproduktion och saknar finansiella tillgångar för att förbättra sina produktionssystem. Kontraktsproduktion definieras som initiativ tagna av stora företag för att säkra tillgången till småföretagarnas produktion och har i utvecklingsländer varit ett sätt för småproducenter att nå en större marknad (Farrington, 1999). Syftet med denna studie var att undersöka lämpligheten att införa kontraktsproduktion inom fjäderfäindustrin i Sudan i dag. Studien är en kvalitativ fältstudie och författarna har genomfört kvalitativa intervjuer med respondenter involverade i Sudans fjäderfäindustri. För ett helhetsperspektiv representerade de intervjuade olika delar av fjäderfäbranschen. De empiriska resultaten analyserades i förhållande till Agenteorins teorier. Resultaten antyder att det skulle vara svårt att införa kontraktsproduktion inom Sudans fjäderfäindustri idag. Detta förklaras främst av att de stora företagens ovilja att ta ett större ansvar, eftersom de redan är under stress på grund av regeringens inblandning. Dessutom ser de stora företagen inga fördelar med att ingå avtal med småproducenter. Studien fann även att även småproducenterna såg få förmåner utöver finansiella från samarbete med stora företag. Politiska problem gör det svårt för både företag och småproducenter och har skapat ett oroligt samhälle där autonomi tycks vara varje parts mål. SLU/Dept. of Economics 2012 M2 eng swe https://stud.epsilon.slu.se/4813/
spellingShingle Agency theory
contract farming
Sudan
poultry
market failure
El-Obeid, Sara
Lundström, Ella
Poultry producers’ perceptions of changing market conditions : a field study of the poultry production in Khartoum state of Sudan
title Poultry producers’ perceptions of changing market conditions : a field study of the poultry production in Khartoum state of Sudan
title_full Poultry producers’ perceptions of changing market conditions : a field study of the poultry production in Khartoum state of Sudan
title_fullStr Poultry producers’ perceptions of changing market conditions : a field study of the poultry production in Khartoum state of Sudan
title_full_unstemmed Poultry producers’ perceptions of changing market conditions : a field study of the poultry production in Khartoum state of Sudan
title_short Poultry producers’ perceptions of changing market conditions : a field study of the poultry production in Khartoum state of Sudan
title_sort poultry producers’ perceptions of changing market conditions : a field study of the poultry production in khartoum state of sudan
topic Agency theory
contract farming
Sudan
poultry
market failure